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Arizona Governor Katie Hobbs has drawn fierce criticism from the Bitcoin community after vetoing a bill that would have allowed the state to hold Bitcoin as part of its treasury reserves. The Bitcoin bill veto has been labeled as a missed opportunity, with prominent figures in the crypto space accusing the governor of ignorance regarding Bitcoin’s long-term potential.
The proposed Bitcoin bill veto blocked the Arizona Strategic Bitcoin Reserve Act, which sought to enable the state to allocate seized funds into Bitcoin, creating a state-managed reserve. Governor Hobbs defended her decision, stating, “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments.”
However, Bitcoin supporters argue that the Bitcoin bill veto reflects a lack of foresight.
Jameson Lopp, Casa co-founder, remarked on X: “This will age poorly.”
Anthony Pompliano, a well-known Bitcoin entrepreneur, criticized the move, saying, “Imagine the ignorance of a politician to believe they can make investment decisions.”
Andrew Gordon, a crypto lawyer, emphasized the need for forward-thinking leadership: “We need more elected officials who understand that Bitcoin and crypto are the future.”
State Senator Wendy Rogers, a vocal Bitcoin advocate who co-sponsored the bill, expressed frustration over the Bitcoin bill veto, stating:
“Politicians don’t understand that Bitcoin doesn’t need Arizona. Arizona needs Bitcoin.”
Rogers confirmed she would reintroduce the legislation in the next session, highlighting that Arizona’s retirement system already holds shares of MicroStrategy (MSTR), a company heavily invested in Bitcoin.
“Which is basically a leveraged Bitcoin ETF. Arizona’s Strategic Bitcoin Reserve bill will be back. HODL,” she said.
Had the bill passed, Arizona would have become the first U.S. state to establish a Bitcoin reserve, positioning itself as a leader in crypto adoption. Instead, the Bitcoin bill veto aligns Arizona with other states where similar proposals, such as those in Oklahoma, Montana, South Dakota, and Wyoming, have failed.
Bitcoin proponents argue that the Bitcoin bill veto disregards the asset’s track record as a high-performing store of value. MicroStrategy’s stock, for example, surged 32% in April, its best month since November 2024, demonstrating Bitcoin’s growing institutional appeal.
Not everyone opposed the Bitcoin bill veto. Prominent gold advocate and crypto skeptic Peter Schiff supported Hobbs’ stance, stating:
“The government should not be making decisions to use public funds to speculate in cryptocurrencies.”
However, Bitcoiners counter that Schiff’s position ignores Bitcoin’s role as a hedge against inflation and currency devaluation—a feature increasingly recognized by corporations and nations worldwide.
Despite the Bitcoin bill veto, the debate is far from over. Rogers’ pledge to reintroduce the bill suggests that Arizona could still become a crypto-friendly state in the future. Meanwhile, the backlash from the Bitcoin community underscores the growing divide between traditional policymakers and crypto innovators.
As Bitcoin continues to gain institutional acceptance, the Bitcoin bill veto may ultimately be remembered as a short-sighted decision, one that could cost Arizona a competitive edge in the evolving financial landscape.
Governor Hobbs’ Bitcoin bill veto has ignited a fierce debate over the role of digital assets in state treasuries. While critics argue that the move reflects outdated thinking, supporters of the veto claim it prevents reckless speculation.
For now, Arizona’s path to Bitcoin adoption faces hurdles, but with advocates like Wendy Rogers pushing for change, the Bitcoin bill veto may only be a temporary setback in the broader march toward crypto acceptance. Get the latest updates from The Bit Gazette.
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